Real Estate Newsletter

• Foreclosure Considerations in Bankruptcy
  Prior to the enactment of the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA), directly upon filing for federal bankruptcy relief, the bankruptcy court would issue an “automatic stay.” The stay is... Read more.
• Lawful Entrance Into the Dwelling Unit of a Tenant
  A landlord’s right of entry into the dwelling unit of a tenant is usually based on state and local landlord-tenant laws, which can vary significantly. As such, the specifics of when a landlord may lawfully enter a rented dwelling... Read more.
• AIA Standard Forms Designate the Architect as Arbiter of Disputes
  Architects generally play three distinct roles in the construction process: (1) agent of the owner, (2) independent contractor and (3) arbiter. An architect serves as an arbiter to settle differences between the owner and contractor... Read more.
• Tax Treatment of Contaminated Property
  The Comprehensive Environmental Response, Compensation and Liability Act of 1980 (CERCLA) imposes liability for the investigation and cleanup of contaminated real property without regard to whether the landowner created or allowed the... Read more.

• Embattled Sarnia dentist closes real estate deal, settles $2M lawsuit: lawyer
• Supreme Court rules for homeowner in ‘equity theft’ dispute
• New Florida property law impacts defective construction lawsuits
• Township lawsuit alleges zoning violation over revised use of golf clubhouse
• Abandoned shopping center on Grand River targeted for demolition in city lawsuit

Criminal Acts in Common Areas: Liability of the Association

By collecting fees from individual condominium owners, a condominium association typically agrees to maintain the common areas of the complex. However, the association may also be required to take reasonable precautions to prevent criminal acts by third parties in the common areas. Third parties are people who do not own a condominium within the complex or are not the invited guests of current condo owners.

Association’s Liability

When a person is injured by the criminal act of a third party, the condominium association may be liable under a negligence cause of action for failing to take reasonable precautions to prevent such acts. To bring action, the injured person must establish that the association had a reasonable duty to protect the person from a third party’s criminal act.

Foreseeable Dangers

If the injured person is a resident or a guest, the association may have a duty to protect against foreseeable dangers. The duty stems from circumstances that indicate criminal activity is present. Such circumstances include past criminal activity, notification of recent criminal activity, or steps the association has taken against criminal activity. Under these circumstances, the association has actual knowledge of the crimes, or should have known of crime. Some examples are high crime rates, strangers on the property, dim lighting, and a lack of security devices such as gates, cameras, or locks.

Duty Assumed Voluntarily

The condominium association may also voluntarily assume the duty in a number of ways:

• An oral commitment to the injured person
• Precautions already taken to improve security
• Written items in the association’s bylaws about certain security requirements.

Special Relationships

Under certain circumstances, the court may view the relationship of the injured person and association as similar to a landlord and tenant. In such cases, there is a special relationship, and a duty to protect against criminal acts is “owed.” Not all courts follow this view, and some hold that landlords generally do not have a duty to protect tenants from criminal acts.

Security Regulations Statutes

Finally, there may be certain statutes that require minimum security standards. Examples are city ordinances requiring dead bolts on exterior doors, or requiring that vacant structures be locked up. Violations of these statutes or ordinances by a condominium association are strong indicators of liability, but the injured person must prove that those violations directly contributed to the criminal activity.

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